The fact that higher-risk European debt was less liquid, or harder to sell quickly, "was less of a concern for euro-area banks than for other banks since the former could 'liquefy' this debt in their operations with the E.C.B.," the B.I.S. said.
The fact that higher-risk European debt was less liquid, or harder to sell quickly, "was less of a concern for euro area banks than for other banks since the former could 'liquefy' this debt in their operations with the E.C.B.," the Bank for International Settlements said.
Thus, larger markets can be less liquid and associated with lower ex ante welfare.
"These tend to be less liquid than large caps, so flows of money into midcaps might have a disproportionate effect," he said.
In fiscal 2009, 51 percent of endowment money was in alternative investments, which tend to be less liquid, compared with 46 percent the previous year.
The cost of capital might rise and markets might be less liquid but given the role played by the global trading frenzy in the credit crunch who is to say that this would be a bad thing?
The result will be less liquid markets, higher transaction costs, a weaker financial system and, as usual, richer lawyers.The starting point for the Volcker rule is a good one.
Unbundling, they argue, is fundamentally uneconomic, and the investor will pay: in terms of the cost of fully independent research; and, still more, in a wider margin between selling and buying securities because the traded market will be less liquid.
Not as many analysts follow these stocks, and they tend to be less liquid, so price swings are amplified in both directions.
Non-U.S. stock exchanges are smaller and could be less liquid, making it harder to get in and out of positions quickly and at a desirable price.
